Chinese Lianchuang Electronics Looks to India’s Electronics Components Sector

Lianchuang Electronics, a prominent Chinese supplier, is in advanced discussions with Amber Electronics and Optiemus Electronics to enter India’s electronics components industry. Known for serving major clients like Oppo, Vivo, and Samsung in the country, Lianchuang is keen to capitalise on the Indian government’s ₹22,919-crore Electronics Components Manufacturing Scheme, as per a Moneycontrol report. This marks the first formal interest from a Chinese company in joining the scheme, which is designed to enhance local production of critical electronics components.

Lianchuang’s Investment Plans and Strategic Collaborations

Lianchuang, which entered India in 2019 with an investment of $20 million in a manufacturing facility, is poised to increase its investment by an additional $50 million if its partnerships with Indian firms come to fruition. The company is exploring opportunities with Indian smartphone manufacturers like HMD and Lava to supply displays for their devices. With the Indian government’s production-linked incentive (PLI) scheme for electronics components offering promising incentives, Lianchuang is also targeting expansion into display and camera module manufacturing, further strengthening its position in the Indian market.

Indian EMS Companies Eyeing Global Partnerships

As per Moneycontrol, India’s push to boost its electronics manufacturing industry has prompted several Indian electronics manufacturing services (EMS) companies to race for joint ventures and alliances with international component suppliers, particularly Chinese players. Key Indian players such as Dixon, Micromax, Zetwerk, Kaynes, Optiemus, and Syrma SGS are actively pursuing collaborations. These companies are optimistic about securing quick approvals under the Press Note 3 framework, which is expected to accelerate their participation in the burgeoning sector.

Read More: India Mulls 10% Cap on Chinese Equity in Electronics JVs

Conclusion

Lianchuang’s efforts to enter India’s electronics components market, as per Moneycontrol, signify a significant development for the country’s manufacturing sector. The potential investment from the company, alongside other EMS firms’ strategic alliances, could help drive India’s ambition to become a global electronics manufacturing hub.

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